MetalsTech (ASX:MTC) shares have climbed over 12% in morning trades as the company publishes its scoping study for the Sturec gold project in EU member state Slovakia.
The big takeaway? Over one million ounces of gold and silver concentrate. Investors should note that the scoping study resource is less than two thirds of the existing JORC resource on-site.
A resource upgrade for Sturec is on the horizon, with diamond drilling to commence on-site in the near future.
So far, for investors, there was already a lot to like about the project before the scoping study was published.
Gold mineralisation starts at surface at some locations on-site, and seriously thick drill intersections (as in, over 150m) were proven to show consistent gold mineralisation continuing at depth.
The Sturec project has been given the following credentials:
Pre-tax value of $853m
Post-tax value of $650m
15 year Life of Mine (LoM)
Pre-production spend of $93.27m
Total pre-tax cashflows of $1.5bn
Internal rate of return at 102.5%
Capital payback of 2.3 years from first production
Total capital cost of $119m
The company notes it is well-poised to maintain a low opex profile across the LoM with processing plant infrastructure being manufactured in China minimising costs needed to get the project rolling.
The company is to commence Phase IV diamond drilling on-site to better refine and prioritise drill targets. That data will also go towards another JORC resource upgrade for the project.
Existing drill runs are still held with assay laboratories, meaning MetalsTech will have more data to announce investors through the remainder of 2022, both for the Phase IV run and prior.
Once it has completed Phase IV drilling and received all assay results, MetalsTech is then to move ahead to a Pre-Feasibility Study for the Sturec project.
Even a surface look at MetalsTech’s financial performance this year shows a palpable interest from investors in the company’s Slovakian operations.
One year returns sit at 125.4%
Year to date performance reflects a growth of 41.2%
MetalsTech is outperforming the materials sector by 125%
MetalsTech outperforming ASX200 by 132%
The company’s market cap currently sits at $68m.
Worth noting is that the company only had $2.1m in cash at the end of the June quarter, meaning there will likely be a raising event of some description on the horizon.
That could be good news for shareholders: there will likely be opportunity to buy more shares at a discounted price.
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